British Polythene Industries (BPI) is reporting its first-half performance will be “comfortably ahead” of last year.

The Greenock-based company posted a 12 per cent drop in first-half profits last year £13.3 million though the group had also cut net debt by 40 per cent in that period to £23.2 million.

A management announcement from BPI issued in May suggested borrowing in the first half would be “higher” than last year.

The rise in borrowing was put down to its £5.5 million acquisition of Winsford-based Flexfilm in April along with increased capital expenditure and the delayed agricultural season.

In a pre-close statement issued today, BPI said it remains confident in “current market expectations” for the full year.

The company said: “Despite a slow start, due to a colder than normal spring, we are pleased to report that the agricultural films markets have proved resilient, compensating for the lower volumes and continued down gauging seen in other products.

“The Group currently anticipates overall volumes to be similar to the first half of 2012.

“Our raw material input costs eased in April and May, and while we are currently seeing increases in June, it seems unlikely that overall market demand will support this reversal.”

BPI said interim results for the six months to June 30 will be announced on August 27.